How to properly use a VPN?

I recently started using a VPN. mainly for paypal usage. However i am a complete noob in proper handling of it. I am completely confused about how to properly use it. So here are my questions.

1. What is the actual difference between a VPN and a VPS?
2. Which one should i use? adaptive, UDP or TCP? I have been using adaptive .
3. It shows me that it is connected to some ip address through some other ip address. (i have no idea what that means)
4. When i connect through my vpn and check my ip online it shows me what i am looking for - a US ip address. So now i can use that to open paypal. However when i use that to open payza they say i cannot open an account in my state.

Now if payza knows that it is not US then wouldn't paypal also know that? Can someone please help me out with some info here? I have been struggling with this for 2 months now.

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